Definition

Noun: A small payment made to acknowledge that a larger debt or obligation exists, without being a substantial installment toward settling it. It is a symbolic gesture that recognizes the obligation while the remainder is deferred or negotiated.

Usage

A "token payment" is used to formally recognize a financial obligation, often when the payer cannot currently afford the full amount. It demonstrates good faith and can be part of a payment arrangement.

Examples

• The tenant made a token payment of $50 to show good faith while negotiating a payment plan for the back rent.
• As a token payment on the large debt, the company sent a check for one dollar.
• The agreement stated that an initial token payment was required to keep the contract active.

Advanced Usage

• In legal or contractual contexts, a token payment (sometimes "peppercorn" payment) can be used to make a binding contract, where the exchange of even a nominal sum validates the agreement.
• The phrase can be used metaphorically to describe any small, symbolic action taken to acknowledge a much larger issue or debt, not necessarily financial.

Variants and Related Words

• Token amount (noun phrase): A nominal or symbolic sum of money.
• Nominal payment (noun phrase): A payment that is very small compared to the actual value or debt, often used similarly to "token payment."
• Good faith payment (noun phrase): A payment made to demonstrate sincere intention to fulfill an obligation.

Synonyms

• Nominal payment
• Symbolic payment
• Peppercorn (in legal contexts)
• Good faith payment

Antonyms

• Full payment
• Substantial payment
• Installment (when it represents a significant portion of the debt)

Related Phrases

• In token of: As a symbol or acknowledgment of something.
  • He gave her a ring in token of his affection.
• By the same token: For the same reasons; in a similar way.
  • The material is strong and, by the same token, quite heavy.

Noun

1. a small payment made in acknowledgement of an obligation